The fundraising totals surprised those who thought the new McCain-Feingold campaign finance law would reduce the amount donated.

The law bans gifts of more than $25,000 and limits "soft-money" donations by corporations and labour unions.

The figures do not represent the true total raised for the elections, since other organisations, ostensibly unrelated to the two main parties, who carried out political education, were not bound by the rules of the campaign finance law.

It was thought by many that the Democrats would be hit hardest by the changes, since they were used to receiving big cheques from labour unions.

Democrats did better at rounding up small donations

The Republican Party was considered better at
rounding up small donations, but the Democrats redoubled their efforts this year, especially in using the internet as a fundraising device.

Democrats are optimistic that by reaching many more individuals, they have put themselves in good stead for the future.

"We now have money in the bank, we have no debt, we have millions and millions of small donors, grass-roots. And we're very proud of what we did," said Democratic National
Committee chairman Terry McAuliffe.

His Republican counterpart acknowledged the accomplishment, telling the Washington Post: "The parties adapted to the law, and frankly the DNC had a bigger adaptation to go through."

"But they broadened their net and were able to get to small donors."

Republicans used rich individuals - called pioneers and rangers - to collect money in small amounts from friends and colleagues, in return for political recognition.